Global Business Environment Analysis for SASOL Company

This presentation provides a comprehensive analysis of SASOL's globalization strategy and its global business environment. It begins with an introduction to globalization and its relevance to SASOL, followed by a detailed PESTLE analysis to identify the political, economic, social, technological, legal, and environmental factors impacting the company. The presentation then examines the key factors driving SASOL's globalization efforts, including cost, market, environment, and competition. It further explores the impact of digital technology on globalization, specifically focusing on communication, security, customer and employee assistance, and efficiency. The presentation also addresses the challenges associated with globalization, such as cultural differences, tariffs, competition, and environmental concerns, and proposes measures to overcome these obstacles. Finally, the presentation concludes with a summary of the key findings and recommendations for SASOL's future globalization endeavors, supported by references to relevant academic sources.

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Global
Business
Environment

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Contents
 Introduction
 What is Globalization
 PESTLE Analysis of SASOL
 Factors driving SASOL Globalization
 Impact of digital technology
 Challenges associated with globalization
 How challenges can be overcome
 Conclusion

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Introduction
Globalization is the process of taking companies presence in
global market. It involves spreading goods and services,
knowledge and ideas, and information around the world.
SASOL is a leading South Africa based chemical and energy
company. With a purpose “Innovating for a better world” the
company is operating with its high quality products in 22
countries with more than thirty thousand employees. This PPT
will help analyzing the strategies and methods that SASOL
should apply to promote its globalization aim and challenges
associated with globalization that company can face.

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What is Globalization?
Globalization is the process by which an organization starts
operating in multiple countries. It involves movement of
products and services, human resource, technology etc. This
process enables an organization to seamlessly trade the
products and services with more countries as well and using the
resources of that country to manufacture its products.

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Pestle Analysis of Sasol Ltd.
PESTLE stand for Political, Economical, Sociological, Technological, Legal and
Environmental. It is a tool that helps an organization to identify and analyze the key
external factors that can impact the performance of organization.

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Political Factors
Political factors relate to the forces that are driven by
the local government of a particular country. While
entering in a global market Sasol Ltd. have to analyze
below political factors related to the targeted country:
• Government trade policies
• Political stability
• Corporate Taxation
• Change in legislation etc.
Economical Factors
The factors that Sasol Ltd should consider while
planning its globalization plan are:
• Country’s infrastructure facilities like Industrial
areas, chemical labs etc.
• Economic stability – Sasol ltd will prefer to expand
its network in an economically stable country.
• Inflation rate
• Exchange rates etc.

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Social Factors
The social factors that Sasol Ltd should consider
while making PESTLE analysis are:
• Attitude of the country’s population (health
and environmental consciousness etc.)
• The society’s culture, norms and religious
beliefs.
• Education level and standard of country.
• Skills of the target country’s labor.
Technological Factors
Sasol Ltd is already applying various new
technological method, and in company’s
globalization plan it can focus on:
• Lowering operating and production cost by
implementing advance technology
• 5G and its possibilities
• Advancement in supply chains.

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Legal Factors
A company should operate in a legal manner and
should abide by the laws of particular country.
While entering a new market Sasol Ltd. should
consider following factors:
• Copyrights and patent laws
• Data protection laws of the country
• Product labeling and its safety precautions.
Environmental Factors
Environmental Factors includes the factors that
relates to the surrounding environment. So
before entering a new market, Sasol Ltd should
consider these points:
• Weather and climate of the targeted country.
• Environmental laws and policies.
• Waste Management Infrastructure

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Factors Affecting Globalization
• Cost: Cost means the total price that company is going to pay for its
complete globalization plan. Sasol ltd. will prefer a country will lower
currency exchange rates, cheaper labor, cheaper raw material. Proper
implementation of pricing strategy can also help the company to
achieve what is desired.
• Market: Deciding a proper market to invest is also a key driving factor
of globalization. Sasol ltd. will try to target a market that involves
higher usage of chemical like farming sector, and liberal regulatory
bodies of market.

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Continue
• Environment: The main aim of globalization is to increase the
production leading increase in consumption and transportation. As a
chemical and energy based company the waste emission of Sasol Ltd.
is higher. So, it has to target a country with proper waste disposal
infrastructure and liberty in environment regulations.
• Competition: While planning to enter a new market Sasol Ltd. should
have to analyze the competitors’ caliber and its presence in that
market. If the quality and quantity of competitors is higher than the
market should be avoided.

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Impact of Digital Technology on Globalization
Digital Technology is a part of technological innovation that helps an organization
in storing data, marketing and promotion, communication, customer support etc.
The major impacts of Digital Technology on globalization are:
• Communication: Globalization promotes connection between businesses and
customers across the world. Digital Technology is helping Sasol Ltd in connecting
with its target audience and adapting safe and secure, reliable and faster medium
to communicate like e-mails, social media, mobile applications and websites etc.
• Security: There is a significant rise in cyber-crime and data leakage nowadays,
this can be a barrier in company’s expansion plan. Sasol Ltd. assets and important
data is mostly stored in online cloud so it is necessary for the company to adopt a
high quality encryption, data backup, and strict measures to minimize such risks.

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Continue
• Customer and Employee Assistance: Digital Technology assist the
employees of the company in their day to day tasks like managing the
subordinates, making reports and managing data etc. Sasol Ltd. has adopted
digital technology by providing customer assistance in local language of the
particular country and in their globalization strategy, they have kept the
customers’ satisfaction at priority, so they are focusing on adopting new
technological methods to connect more with targeted audience.
• Efficiency: Digital technology helps in improving the efficiency of system,
products and services as it will be easy for company to organize the data and
details of customers and employees, recording and tracking the performance
etc.

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Challenges Associated with Globalization
Some of the major challenges that Sasol Ltd is facing while going global
are:
• New and Unknown Culture: It involves the differences between religion,
norms and beliefs of the population. This is the major barrier that Sasol
Ltd.’s is facing while going global, variations in culture is affecting
company’s decision making.
• Tariffs, Taxes and Export fees: Most of the countries charges extra
tariffs and taxes from the company that brings goods into their country.
Sasol Ltd. deals in products like chemicals and fuels, and these type of
products comes under the high tax slab in many countries.

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Continue
• Competition: Penetrating a high competitive market is a tough task
for a Sasol Ltd as customers are already consuming the goods and
enjoying the service of the competition, and convincing them to use
its products will involve hard efforts and proper execution of plans.
• Environmental Concerns: It is true that globalization is linked to
various environmental damages as it increases pollution,
deforestation, greenhouse gas emissions etc. So, government of many
countries has imposed strict laws and regulation and a company like
Sasol Ltd. faces difficulty to operate as per those laws and policies.

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Measures to Overcome Challenges Associated
with Globalization
• Challenge #1: Cultural Differences – To overcome the challenges because
of cultural differences Sasol Ltd. should have to include the local person of
that country in top level management for that particular country. Involving a
local in decision making will help the company to take decisions as per the
population’s preference and taste.
• Challenge #2: Taxes, Tariffs and Export Fees – By increasing the benefits
for the poor, hiring the locals and increasing value of the governments’
benefits Sasol Ltd. can get tax rebates in many countries.

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Continue
• Challenge #3: Competition – To minimize the threat of competitors while
entering a new market Sasol Ltd. can target such countries in which the
number of competitors is low and in a case where the competition is high
but the potential of market is also higher, the company can get competitive
advantage by providing quality products at lower prices.
• Challenge #4: Environmental Concern – A company like Sasol Ltd. faces
many environmental rules and regulations because it deals in chemical and
fuels which emits comparatively more waste and carbon. So to avoid any
problem, the company should apply proper waste disposal techniques and
should increase its parts in CSR activity in each country.

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Conclusion
In conclusion, taking the company at a global level is a worthy endeavor as it provides
ample opportunities of growth to a company, but it also comes with several challenges. A
proper PESTLE Analysis can help a company to study the external factors that can
impact the globalization plan and proper study of key factors that can drive the
globalization is also a crucial part of the process. Proper execution of the plan and
implementing new digital technology and measures to tackle the challenges can help the
company to achieve the desired output.

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REFERENCES
Beck, U., 2018. What is globalization? John Wiley & Sons.
Elmansy, R., 2019. PESTLE Analysis and When to Use it.
Helpman, E., 2018. Globalization and inequality. Harvard University Press.
Grassi, A. and Vallati, M., 2019, May. AI to Facilitate Legal Analysis in the PESTLE Context.
In Proceedings of the 2019 Emerging Technology Conference. University of Huddersfield.
Jelen, et.al, 2020. Environmental Challenges in Globalization and Post-Modern Times. In The Geography
of Central Asia (pp. 75-100). Springer, Cham.
Luo, Y., 2021. New OLI advantages in digital globalization. International Business Review, 30(2),
p.101797.

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Thank
You